Integrated Gas overview

Key milestones

Portfolio events

  • In February, we completed the acquisition of First Utility, a leading independent UK household energy and broadband provider.
  • In March, we completed the acquisition of a 43.8% interest in Silicon Ranch Corporation, a developer, owner and operator of solar energy assets in the USA.
  • In July, with our partners, we completed the dilution of interests in Canada to Petronas. As a result, our interest in LNG Canada was reduced from 50% to 40%.
  • In August, we acquired ENI’s interest in the North Coast Marine Area (NCMA) block offshore Trinidad and Tobago, increasing our interest from 63.2% to 80.5%.
  • In December, we acquired Total’s 26% interest in the Hazira LNG and Port venture, increasing our interest from 74% to 100%.
  • In December, we formed 50/50 joint ventures with EDF Renewables and EDP Renewables to build wind farms off the coast of New Jersey and Massachusetts, respectively, in the USA.

In February 2019, we acquired sonnen, a provider of smart energy storage systems and innovative energy services for households, and Limejump, a UK-based digital energy-technology company.

Major milestones

  • In June, the final investment decision was taken on the Borssele III and IV offshore wind farm projects in the Netherlands (Shell interest 20%).
  • In October, the final investment decision was taken on LNG Canada (Shell interest 40%). Construction has started and first is expected before the middle of the next decade.
  • In December, wells were opened at the Prelude floating liquefied natural gas (FLNG) facility in Australia (Shell interest 67.5%) and gas and condensate are produced and moved through the facility. Once this has concluded, the facility will be stabilised for reliable production of LNG and .

Divestments

  • In Greece, we sold our 49% interests in Attiki Gas Supply Company S.A. and Attiki Natural Gas Distribution Company S.A.
  • In India, we reduced our interest in Mahanagar Gas Limited from 32.5% to 10%.
  • In Malaysia, we sold our 15% interest in Malaysia LNG Tiga Sdn Bhd to the Sarawak State Financial Secretary.
  • In New Zealand, we sold our shares in Shell entities to OMV.
  • In Thailand, we sold our 22.2% interest in the offshore Bongkot field and adjoining acreage to PTT Exploration & Production Public Company Limited.

In November 2018, we agreed to sell our interest in the undeveloped Sunrise gas field in the Timor Sea (Shell interest 26.6%) to the government of Timor-Leste. The transaction is pending regulatory approval and expected to close in the first half of 2019.

Integrated Gas key statistics

 

2018

2017

2016

2015

2014

[A]

Available for sale.

[B]

Natural gas volumes are converted into oil equivalent using a factor of 5,800 scf per barrel.

[C]

Excludes employees seconded to Joint Ventures and Associates.

[D]

As revised, to align with the current year definition.

Earnings ($ million)

11,444

5,078

2,529

3,170

10,610

Earnings excluding identified items ($ million)

9,399

5,268

3,700

5,057

10,332

Cash flow from operating activities ($ million)

14,617

6,467

9,132

7,728

12,689

Liquids production (thousand ) [A]

214

203

223

204

221

Natural gas production (million ) [A]

4,311

3,969

3,832

2,469

2,666

Total production (thousand ) [A][B]

957

887

884

631

682

liquefaction volumes (million tonnes)

34.3

33.2

30.9

22.6

24.0

LNG sales volumes (million tonnes)

71.2

66.0

57.1

39.2

39.5

Capital investment ($ million)

4,460

3,827

26,214

5,178

9,124

Capital employed ($ million)

86,850

87,462

86,631

62,481

62,127

Employees (thousands) [C]

8

8[D]

9[D]

13

11

Integrated Gas earnings and cash flow [A]

$ billion

Integrated Gas earnings and cash flow from operating activities (in $ billion) – development from 2014 to 2018 (line and bar chart)

[A] Excluding identified items.

Integrated Gas production

mboe/d

mtpa

Production for Liquids, Gas (in mboe/d) and LNG liquefaction volumes and LNG sales volume (in mtpa) – development from 2014 to 2018 (line and bar chart)
LNG
liquefied natural gas
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LNG
liquefied natural gas
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LPG
liquefied petroleum gas
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b(/d)
barrels (per day)
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scf(/d)
standard cubic feet (per day)
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boe(/d)
barrels of oil equivalent (per day); natural gas volumes are converted into oil equivalent using a factor of 5,800 scf per barrel
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LNG
liquefied natural gas
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